Technical analysis: key levels for gold and crude

Gold is expected to break higher amid short-term retracement, while Brent prices look set for further downside.

Gold retraces after recent rally

Gold has been retracing after the rally seen on Monday, with the dollar strength denting its bullish resurgence.

There is a strong possibility that this is a precursor to another leg higher. However, it is also worth being aware that a break below $1216 would provide a more bearish signal. With that in mind, a bullish picture remains in place unless we break below $1216.

Brent breaks lower from consolidation phase

Brent managed to break lower following the continued respect of the $81.63 resistance level.

That builds on the bearish pattern in play over recent weeks, pointing towards further downside. Given the relatively minimal decline beyond the $79.64 support level, it looks like we should have further left in the tank, with a bearish view holding unless we break above the $81.63 level.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer